AURORA, ON — Magna International has completed its acquisition of DaimlerChrysler Corp.’s wholly-owned subsidiary, New Venture Gear, Inc. (NVG).
The acquisition involves the creation of a new joint venture, which will be called New Process Gear, Inc. New Process Gear, which operates a manufacturing facility in Syracuse, NY, will initially be owned 80 percent by Magna and 20 percent by DaimlerChrysler. Magna will acquire DaimlerChrysler’s interest in New Process Gear, in September 2007.
The transaction also involves the acquisition by Magna of certain other U.S. and European assets of NVG, including a manufacturing facility in Roitzsch, Germany, and a research and development center and sales office in Troy, Mich. Anti-trust approvals in the U.S. and Europe were recently obtained and both UAW bargaining units ratified new collective bargaining agreements yesterday. The purchase price for 100 percent of the NVG business is approximately $431 million, subject to post-closing adjustments.
Click here to view the rest of today’s headlines.